New Mexico officials project record budget in 2024
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LAS VEGAS, N.M. – The Legislative Finance Committee presented its budget report Wednesday in Las Vegas, and it’s projecting a lot of extra money.
This isn’t the first year they have projected big bucks coming in either, but what does this really mean for our state?
Reoccurring revenues for the 2025 Fiscal year are estimated at $13.051 billion, however they are projecting $3.48 billion in “new money.”
In the presentation, the Legislative Finance Committee projected a 34.4% growth from the 2024 reoccurring fiscal year budget.
“Two thirds of the new money came from oil and gas so it’s just an unbelievable boom still in the Permian Basin,” said Republican State Sen. Pat Woods who represents District 7.
Legislators on both sides of the aisle weighed in on how the oil industry is impacting this flow of new money into our state.
The committee said the growing oil production and oil prices in our state is the reason for the more than $3 billion surplus.
“Over the last year we have allowed ourselves to create a structure where our reliance on one industry, oil and gas, fund 50% of our budget is changing. When that changes this new money allows us to make further changes within New Mexico, so we aren’t riding a roller coaster anymore of lots of money, no money,” said Democratic State Sen. George Muñoz who represents District 4.
“When we talk about oil and gas that is the people’s resource, that’s where that oil and gas severance tax comes from and so it seems to be that a portion of those need to go back to our New Mexico taxpayers,” said New Mexico House Republican Leader Ryan Lane.
While a large chunk of the money, $1.18 billion, will go towards the Early Childhood Education and Care Trust Fund (ECTF) under the General Fund Reserves, lawmakers are hoping to get the green light for capital projects and future funds.
“In some ways you can see this as year two or year three of a different era for New Mexico. An era where we can plan, we can invest in the core things that we value as New Mexicans, education, economic development, infrastructure, water, public safety, things of that nature,” said Democratic House Rep. Nathan Small who represents District 36.
Gov. Michelle Lujan Grisham also weighed in on the budget:
“The robust general fund proves that what we are doing in New Mexico’s economy is working. As we see another record year of projected revenue, we will continue building a solid financial future for our state through meaningful and long-lasting investments, always with an eye on stewardship of public dollars and fiscal responsibility.”